EnergyBiz - November/December 2007 - (Page 37)

excelerate energy ceO rob bryngelson excelerate energy, a liquefied natural gas importer and marketer, in december plans to begin operating a deepwater LnG facility, in the diagram to the left, that will receive shipments from vessels that convert the shipments to natural gas that is then piped 13 miles to the mainland. The company believes such a system, the first of its kind on the east coast, will allow it to supply gas-hungry consumers without raising community concerns about the safety of large onshore LnG receiving terminals. iMagE and PHotos courtE sy of E xcElEr atE EnErgy We also have a solid approach to risk management. We do not go forward until we have the supply agreements in place.” Plentiful risks The risks are plentiful and notable in that expensive assets might not operate at capacity. But, ChevronTexaco, ExxonMobil and Shell have invested billions all over the world in liquefaction plants, ships and re-gasification facilities. With the global demand for natural gas anticipated to be in the 2.6 percent range until 2030, those companies are expecting their LNG ventures to pay off in a big way. Despite the call for more LNG terminals, they have been a tough sell. Neighborhood groups worry about explosions. Environmentalists are also concerned, noting that the pipelines connecting to the terminals would be placed in ecologically sensitive areas. At the same time, the United States will be competing with others nations for limited LNG resources while it would be relying on potential unstable nations such as Libya and Algeria for supplies. Those fears have derailed some projects, particularly off the coast of California. Calpine backed out of building a plant in Eureka, Calif., because the local community and its leaders were adamantly opposed. The power company said that it values community relations and didn’t want to operate under such conditions. The permitting process is rigorous and requires more than 40 approvals from state and federal agencies. At the federal level, lawmakers have determined that more LNG projects are a must and have directed the federal Energy Regulatory Commission to streamline siting protocol. Delays may be in the offing. But, fERC says that any interruptions are not because of it, pointing out that it has shaved six months off its permitting procedures. In any event, federal regulators advise would-be participants to meet early on with all the stakeholders to resolve differences and before they file any papers. Regulators will want to know if projects are economically feasible and whether expected capacity levels are contracted in part or in whole before construction. But, they are more concerned with the effect that any import terminals would have on sea life, air emissions and the security of the general public. “On the siting side, the NIMBY issues are so difficult,” says Catherine Little, partner in the international law firm of Hunton & Williams in Atlanta. “We have increasing tensions in this area. I see these things as getting more and more heightened. To work out these issues, it will have to be done out on a site-by-site basis.” www.energycentral.com E n E rgyB i z 37 http://www.energycentral.com

Table of Contents Feed for the Digital Edition of EnergyBiz - November/December 2007

EnergyBiz - November/December 2007 Contents Continental Grid Vision Needed Readers’ Views and Opinions Next for National Grid Clearing the Air The Need for Nuclear Energy Trade Status Report The Innovators California On The Leading Edge FERC Sparks Change Getting Coal Right Leadership in Times of Turmoil Innovation Delivers Return A Tale of Two IPOs LNGs Bright Prospects Generation Techologies The Age of Superconductors Leaders with Vision Get Ready for Plug-in Hybrids Betting on Batteries Cost of Decarbonizing Nuclear Helmsman – A chat with Dale Klein, Chairman of the U.S. Nuclear Regulatory Commission Global Energy Snapshot; Low-Income Energy Help; IT Spending Robust; The Greening of State Regulators; Generating Support Simplifying Offshore Wind Regs Chasing Construction Costs Energy Agency Sets New Course Deregulation Means Higher Rates Go-To Staffer Nightmare in Manhatten

EnergyBiz - November/December 2007

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